1099-NEC calculation

Allow me to provide some information about how 1099-NEC forms are being generated in QuickBooks Online, LisaG5.

The 1099-NEC is the form that will be needed to report independent contractor payments for the calendar year 2020. NEC stands for Nonemployee Compensation and Form 1099-NEC is taking the place of what used to be recorded in Box 7 of Form 1099-MISC.

To keep nonemployee expenses separate from Form 1099-MISC and clear up some confusion with due dates, you can use Form 1099-NEC to report nonemployee compensation. Non-employee compensation includes fees, commissions, prizes, awards, and other forms of compensation for services. You can visit this article for more information: How to Modify Your Chart of Accounts for your 1099-MISC and 1099-NEC filing.

For more QuickBooks Online Payroll (QBOP) help articles, you can browse this link for additional resources. 

Reach out to us anytime if you have any other concerns with payroll forms. Don't forget, we're here for you to cater to all you need 24/7.

This does not answer my question at all.  I have spent almost 4 hours on this exact topic by QB chat and by phone and nobody had given me an answer.

Hello, @LisaG5. Let me join the thread and provide information to you about the 1099 NEC calculation.

The data reported on Form 1099-NEC are payments totalling $600 or more in the previous year to contractors, freelancers, vendors or any other non-employees. Or for any person you've withheld any federal income tax from under the backup withholding rules. And if the amount has previously reported on Box 7, which is the total of non-employee compensation. Then, information post on the 1099-NEC.

You can also run the 1099 Transaction Detail report to verify the amount and the correct accounts for the 1099 NEC and 1099-MISC. To run the report, here's how:

1. In the left menu, click Reports.
2. Type in 1099 Transaction Detail Report in the search field.
3. Set the necessary filters.
4. Click Run report.

Please also know that the payments made via credit card, debit card, or third party system, such as PayPal, are excluded from the 1099-MISC and 1099-NEC calculations since the financial institution reports these payments.

For more information about 1099-NEC, see the below articles:

• Tax Year 2020 - Instructions for Forms 1099-MISC and 1099-NEC
• Understanding payment categories for the 1099-MISC and 1099-NEC
• What payments are excluded from a 1099-NEC and 1099-MISC?

If you have additional questions on this or anything else about QuickBooks, know I'm here to help! Have a great day.

It would be helpful if you read my original question.  You are not responding to my specific question, just posting how-to instructions that do not apply to my situation.  I can use google to find what you have sent to me.  

You have a software issue that nobody wants to address or take responsibility.  We have a client using the bill.com app.  When we run our 1099-NEC payment list, only bills are showing up in the details and in the calculation of the 1099-NEC.  This is NOT the cash basis of accounting and it is not in compliance with the IRS rules for preparing 1099-NEC forms.  The software is generating 1099's off of either the bill due date or the bill date, NOT the PAYMENT date.  The purpose of using software is to reduce manual errors and to streamline processes.  

Because of your oversight, we have prepared numerous 1099-NEC forms that were incorrect.  I need a solution to this problem ASAP.  This is a very costly error that impacts individual taxpayers that have already filed tax returns with incorrect information.

Hi LisaG5.

I checked this and confirm that QuickBooks Online uses the payment date for the 1099-NEC calculation, not the due date nor the bill date. I suggest reaching out to our Support Team so they can verify the root cause and see if this has something to do with our partner payment solutions, Bill.com.

1. Click the (?) Help icon and enter Talk to a human (then type it again when prompted).
2. When asked by the bot, enter "1099-NEC Calculation".
3. Select I still need a human, then proceed with Contact us or Get help from a human.
4. Choose either Chat or Callback.

If you need help in filing 1099s, check this article: Create and file 1099s using QuickBooks Online.

Get back to me anytime if you have more questions I can help. I'll be here!

I'm having the same issue. I have a Dec. 31st, 2021 bill that paid on Jan. 5th, 2022. The vendor shows as selected but no 1099-NEC is generated. If I go back and change the date of the payment to Dec. 31st 2021 the vendor is included. Shouldn't the 1099-NEC be calculated based on the date of the bill NOT the payment? 

I appreciate you for joining the thread, @ctanke1. Let me provide some information about how the 1099-NEC calculation works in QuickBooks Online (QBO).

As stated by my colleague above, we have reviewed this and confirmed that QBO uses the payment date for the 1099-NEC calculation, not the due date nor the bill date.

I also suggest reaching out to our QuickBooks Online Support so they can verify the root cause and see if this has something to do with our partner payment solutions. You can reach us Monday - Friday from 6:00 AM to 6:00 PM, and on Saturday and Sunday from 6:00 AM to 3:00 PM. 

Here's how to reach out to them:

1. Log in to your QuickBooks Online account.
2. Click the ? Help button at the top right corner.
3. Select Contact Us.
4. Enter a brief discussion with your concern, then click Continue.
5. Choose how you want to contact our support and fill in the information.

Additionally, you can visit the following articles to get answers to your 1099s questions, also how you can create and print your 1099s forms:

• Get answers to your 1099 questions
• Create and file 1099s using QuickBooks Online

• Print your 1099 forms

Please let me know if I can be of additional assistance by leaving a reply below. I’m always here to help. Thanks for dropping by and have a great day!